True blue

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“If the ocean were a country, it would have a seat at the G7,” says Valerie Hickey, the World Bank’s Global Director of Environment, Natural Resources and Blue Economy. 

Given that three-quarters of our planet’s surface is covered by oceans and seas, this almost feels like an understatement. According to the United Nations Development Programme (UNDP), the ocean economy is estimated to be worth some US$2.5 trillion per year in goods and services globally. In other words, about the size of the German economy. What’s more, the ocean directly feeds and supports the livelihoods of more than 3 billion people across the globe. 

Though the natural capital value of the sea is estimated at US$24 trillion, these resources are sinking fast. The ocean’s health is declining due to local stresses such as habitat destruction, overfishing and pollution, as well as rapid and unprecedented temperature changes due to climate change and increased acidity levels. All of which make it increasingly harder for marine life, and the economies that depend on them, to survive. 

An increasing emphasis on the Blue Economy, a concept devoted to the sustainable use of oceans resources, aims to reverse this trend by preserving a healthy oceanic ecosystem that supports economic growth and improved livelihoods. Martin Koehring, head of the World Ocean Initiative, highlights the critical need to shift the ocean narrative towards sustainability and economic opportunity within the blue economy. He identifies five key areas for growth and innovation in the Blue Economy. 
What is the “Blue Economy”? 

The term “Blue Economy” gained prominence following the United Nations Conference on Sustainable Development (Rio+20) in 2012. At its core, the Blue Economy refers to the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystems. It encompasses a wide range of sectors, including marine renewable energy, fisheries, maritime transport, tourism, and waste management. The primary goal is to realize the economic potential of the ocean’s resources in a way that safeguards biodiversity and promotes resilience to climate change.

1. Blue Foods It is vital to address the sustainability challenges in the fisheries sector, such as overfishing, illegal fishing, and pollution from fishing equipment. The ocean could potentially provide six-times more food than it does today, with aquaculture poised to supply two-thirds of seafood for human consumption by 2030. Innovations in sustainable seafood include the development of monitoring technologies, novel fish feeds, and lab-grown seafood, offering pathways to increase the sector’s sustainability and productivity. 
2. Blue Energy There are significant environmental and social advantages of offshore wind over onshore wind such as no competition for land and fewer transport constraints. Ocean-based renewable energy, including offshore wind, wave, and tidal energy, could meet nearly 10 percent of the greenhouse gas emissions reductions needed by 2050 to keep global warming within 1.5°C. The rapidly falling costs and favorable policy environments, especially in regions with vast coastlines like Viet Nam and Europe, are accelerating the adoption of blue energy technologies. 
3. Ocean Data and Tech The boom in ocean science, propelled by initiatives like the UN Decade of Ocean Science for Sustainable Development, is ushering in a new era of technology-driven ocean exploration and monitoring. Emerging technologies, including satellite imaging, remote sensors, big data, and artificial intelligence, are revolutionizing our understanding of ocean health and protecting marine ecosystems from illegal and unsustainable activities. 
4. Blue Finance Transitioning investment from activities harmful to the ocean, such as overfishing, towards sustainable endeavors like zero-carbon shipping and marine conservation is crucial. Despite historically low investment levels in ocean sustainability, interest among institutional investors is surging. Guidance for investors and innovative financing mechanisms, such as blue bonds and impact investing, are helping to channel capital towards sustainable ocean economy opportunities. 
5. Harnessing Marine Natural Capital Marine ecosystems like mangroves, seagrass meadows, and coral reefs are invaluable natural assets that act as carbon sinks and biodiversity hotspots. Restoring and protecting these ecosystems can significantly contribute to mitigating climate change and enhancing biodiversity. The emerging blue carbon markets offer economic incentives for the conservation and restoration of these ecosystems, providing a financial rationale for their preservation. 

Working in harmony with the sea 

For Small Island Developing States (SIDS), the ocean is not only a major economic asset and a critical source of food, but a key component of cultural identity. With the impacts of climate change the sustainability of the ocean is also an issue of life and death. Not surprisingly, an increasing number of SIDS are incorporating blue economy strategies in their development plans and are using those frameworks to give rise to new financial mechanisms supporting investments in the blue space. For example, many Latin American and Caribbean SIDS have started to create policies and regulatory environments to facilitate blue carbon initiatives. In 2022, the Bahamas adopted a Climate Change and Carbon Markets Initiatives Bill and Belize announced that it would develop a regulatory framework for blue carbon projects. Guyana and Suriname have each developed mangrove management strategies. (Source: UNDP)